Economics in China and South Korea

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DateEconomics in China and South Korea

Economics of the East is one of the most successful economies and home of the world’s largest economies. There has been stable political environment that eases industry and commerce. Cost of labor and supplies which reduces overall cost of doing business. There is also open trade associated with low duties. Moreover, free and flexible labor as well as available market and various factors which enhances business performance within the region. The East Asia region also has a hardworking population with great skills in technology that enable them boost production in the region. In addition, the East economics is accompanied with huge and fast growing consumer market that has largely increased consumption in the region. This article analyses and compares the economics of china and South Korea.

China

China is a densely populated country in the Eastern Asia region whose growth has been extremely commendable in the last few years. It has developed a very good entrepreneurial culture among its population, which has greatly propelled her growth. The population in China has a hardworking and ambitious hence boosting their economies (Lardy 15-18) .China has really released quite a large number of entrepreneurs worldwide who in turn borrowed the Western ideas and comfortably translated them into their respective countries with ease. The technological advancement in China has really been felt by the world. The political stability is thought to be favoring the Chinese growth especially their action during the downturn which lifted the entire Asian region.

South Korea

According to the Heritage Foundation South Korea is one of the Asian Tigers with both high income and market (Web). It enjoys the privilege of being regarded as one of the Next Eleven and further positions herself as one of the fastest growing world economies. South Korea have minimal natural resources but with very high population in a small geographical area. Her large population and small territory which provides small internal consumer growth prompted it to adapt an export oriented economy thus catapulting her economic growth.

South Korea’s economy is ranked 15th in globally by nominal GDP and 12th by purchasing power parity thus making it one of the major economies in the world. Even though the South Korean economy positively grows, her credit rating is normally low due to the aggression by the North Koreans. It however, does very well in national debt and even has fiscal reserves which may help in curbing any form of financial emergency. Because of her stabilized financial systems, South Korea is amongst the many countries that were not affected by the financial crisis (The Heritage Foundation Web).

Economics Based in Both

Apart from their Asian location, China and South Korea are amongst the world’s largest economies with very high population. They largely depend on exports in boosting their economies and have very huge fiscal reserves that may help them in terms of emergencies. China and South Korea have very strong financial systems that helped them to avoid the effects of global financial crisis. Technological advancement and cheap labor are amongst the key factors driving the two economies. Moreover, China and South Korea hugely depends on manufacturing industries and enjoys both regional and global market for their manufactured products.

Methodology

Economics start

China’s reforms and opening up in 1978 as well as adoption of the “five-year-plan greatly helped in supporting her economic growth. The economics have really grown between 1978 and 2005 when it adopted industrial powerhouse that enabled it move beyond initial low wage sector to the more complicated production. According to Lardy Restructuring of industrial, agricultural sector as well as financial sector really catalyzed the phenomenal growth (5-8).

Also, South Korea which after the Korean War became one of the poorest countries for almost 10 years in 1960s introduced modernized technology which catalyzed their production. According to the Heritage Foundation South Korea produced a lot of exports and ploughed back the incentives to expand their industry which employed many people and completely transformed the country (Web). It adopted sophisticated industries which allowed automation of systems thus reducing labor dependency but enhancing global competitiveness.

Economics Now

Both China and South Korea have flourishing economies and have greatly benefited from globalization. The two economics are accompanied with intensive manufacturing industries. Foreign markets have been very favorable for both countries. They are also using a lot of technological knowhow to enhance their economic growth. It is undeniable that industrialization has majorly boosted both China’s and South Korea’s economics.

Conclusion China Economics

China’s economic growth is superb. China is regarded as one of the countries that have really benefited from globalization (Lardy 3-6). China is actually the world’s second largest economy both by GDP and purchasing power and remains the world’s fastest growing economy. China’s growth rate has been commendable in the last 30 years and it is also the largest exporter and the second largest world importer as well as the largest manufacturer globally.

Works Cited

The Heritage Foundation. 2013 Index of Economic Freedom, 2013. Web. 31 Oct. 2013. <http://www.heritage.org/index/country/southkorea>.

Lardy, Nicholas R. Sustaining China’s Economic Growth After the Global Financial Crisis. Washington, DC: Peterson Institute for International Economics, 2012. Internet resource.